v.
Hyundai Motor America
UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF CALIFORNIA
| Dayna Owen, No. 2:22-cv-00882-KJM-CKD Plaintiff, ORDER v. Hyundai Motor America, 1S Defendant.
This action arises under the California Song-Beverly Consumer Warranty Act and related | state and federal law. After several months of discovery, plaintiff Dayna Owen accepted | defendant Hyundai Motor America’s offer of judgment. The court entered judgment in favor of | plaintiff in the amount of $72,000.00. As the prevailing party, plaintiff moves for reasonable | attorney’s fees, costs and expenses. The motion is granted with modifications as explained in | this order. | I. BACKGROUND Plaintiff alleged she bought a defective Hyundai Elantra in 2016. Compl. 8, 13, ECF | No. 1. Plaintiff requested defendant buy back the vehicle or provide restitution after defendant | could not repair the defects. /d. § 15. Defendant did not provide restitution. /d. 15, 17. | Plaintiff then filed a lawsuit in California state court, asserting claims under California law,
including the Song-Beverly Act. See Prior Order (Mar. 15, 2023) at 2,1 ECF No. 31 (citing State Ct. Compl., Owen v. Hyundai Motor Am., No. 34-2021-00296264 (Cal. Super. Ct. Sacramento Cty. filed Mar. 11, 2021)).2 Plaintiff voluntarily dismissed that complaint and filed a new complaint in this court. Id. Plaintiff’s allegations in this action mirror those in her state complaint. See id.; compare Compl., with State Ct. Compl. Plaintiff’s timing of the dismissal of her state complaint implied she had filed this action in an attempt to avoid an adverse outcome in state court, namely, arbitration. See Prior Order (Mar. 15, 2023) at 4–5. The court thus granted defendant’s motion for an assessment of costs and fees under Federal Rule of Civil Procedure 41(d), which serves as a deterrent to forum shopping. See generally id. The court then awarded defendant the costs and fees it “would not have incurred but for [plaintiff’s] dismissal and refiling.” Prior Order (Apr. 14, 2023) at 2, ECF No. 35. The court stayed the action until plaintiff paid all fees and costs. See id. at 7; Prior Order (Mar. 15, 2023) at 6–7. After defendant received payment, the court lifted the stay. Prior Order (June 26, 2023), ECF No. 40. The parties engaged in discovery, and after discovery-related motions practice, plaintiff accepted defendant’s offer of judgment in the amount of $72,000.00. Req. Entry of J., ECF No. 90. The court entered judgment on January 31, 2024. J., ECF No. 91. Plaintiff filed a bill of costs seeking $9,246.63. See Bill of Costs, ECF No. 92. Plaintiff now moves for attorney’s fees, and the costs and expenses they previously requested in the bill of costs, under the Song-Beverly Act. Mot., ECF No. 93; Mem., ECF No. 93-1. Defendant opposes, Opp’n, ECF No. 94, and plaintiff has replied, Reply, ECF No. 95. The court submitted the motion without oral argument. Min. Order (Apr. 9, 2024), ECF No. 98.
[*14]2023- Dara Tabesh 21-22 107 $500.00 $53,500.00 2024 15 Total $53,500.00 Year Years of Billing 16 SLP Attorneys Hours Lodestar Billed Experience Rate/Hr.
[*17]David Lunn 2023 25 3.7 $550.00 $2,035.00 Ivy Choderker 2023 23 42 $500.00 $21,000.00 18 Joy Deleon 2023 23 3.4 $500.00 $1,700.00 Elizabeth 2023- Larocque 2024 21-22 8.3 $500.00 $4,150.00 Greb Yu 2023 19 6 $475.00 $2,850.00 Mark Gibson 2022 14 1 $375.00 $375.00 21 Mani Arabi 2023 11 23.1 $375.00 $8,662.50 22 2022- Tionna Carvalho 8-10 8.8 $350.00 $3,080.00 2024 Ariel Harman- 2022- 5-6 6.7 $300.00 $2,010.00 Holmes 2023 Alayna Dias 2023 1 3.6 $325.00 $630.00 Total $46,492.50 23 Accordingly, the total lodestar amount is $99,992.50 ($53,500.00 for Eco Tech and 24 $46,492.50 for SLP). D. Multiplier Plaintiff argues a lodestar enhancement of 1.35 times the amount is warranted because plaintiff’s counsel obtained an excellent outcome, and there was substantial risk of non-recovery or delayed recovery because counsel represented plaintiff on a contingency basis. Mot. at 20–22. Defendant argues the court should apply a 33 percent negative multiplier because the requested fees are excessive. See Opp’n at 13–14. Defendant argues the requested amount is excessive because the case settled before trial, the case involved a non-complex area of law, plaintiff has not shown why eleven attorneys were necessary and these types of cases are repetitive, without the need for counsel to learn an area of law anew. Id. The court may adjust the lodestar fee award based on the following factors: “(1) the novelty and difficulty of the questions involved, (2) the skill displayed in presenting them, (3) the extent to which the nature of the litigation precluded other employment by the attorneys, [and] (4) the contingent nature of the fee award.” Ketchum, 24 Cal. 4th at 1132. “[A] contingent fee agreement only favors an upward departure when there is an ‘uncertainty of prevailing on the merits and of establishing eligibility for the award.’” Arias, 2020 WL 1940843, at *5 (citation omitted). An enhancement to the lodestar is not warranted in this case. Although counsel represented plaintiff on a contingency basis, the case did not involve any novel or difficult issues, plaintiff’s counsel was not required to exercise any unusual skill and nothing in the record shows counsel was precluded from taking other work. See, e.g., Nagesh, 2021 WL 1060357, at *5; Seebach, 2020 WL 4923664, at *6 (“Given that plaintiff’s counsel ‘regularly undertakes this type of work,’ the court does not find counsel faced such uncertainty of prevailing on the merits that a multiplier is warranted.”). The delays in this case are partially due to plaintiff’s own noncompliance with the Local Rules and court orders. See, e.g., Discovery Order (Dec. 8, 2023) at 8, ECF No. 81 (noting “it is clear that both parties abused the discovery process by failing to comply with the standards expected of litigants and counsel before this court, and by completely failing to cooperate in the meet and confer process.”); Discovery Order (Nov. 9, 2023) (denying plaintiff’s motion to compel for failing to meet and confer); Min. Order (Sept. 13, 2023), ECF No. 60 (dismissing plaintiff’s motion for discovery because parties did not file a joint statement regarding the discovery dispute). Rather than supporting an increase in the lodestar award, the circumstances of this action show the lodestar award should be reduced. See Laffitte v. Robert Half Int’l Inc., 1 Cal. 5th 480, 489 (2016) (court may apply negative multiplier). First, neither the law nor the evidence was complex for attorneys who specialize in bringing this kind of case. Second, plaintiff was represented by eleven attorneys from two firms, which appears to have led to inefficiencies and unnecessary billing for a case of this type. Third, plaintiff’s counsel was not required to employ any particular, unusual or specialized skill. Taking these factors into account, a reduction of 20 percent is appropriate. See, e.g., Pacheco v. Ford Motor Co., No. 18-09006, 2022 WL 845108, at *6 (C.D. Cal. Mar. 22, 2022) (reducing lodestar award in Song-Beverly action in part due to overstaffing, inefficiency and the court’s experience overseeing similar actions); Salmeron v. Ford Motor Co., No. 18-07266, 2020 WL 9217979, at *6 (C.D. Cal. July 14, 2020) (reducing lodestar in Song-Beverly action in part because the case was “significantly overstaffed (with 11 attorneys across two firms)” leading to unnecessary attorney billing); Hernandez v. FCA US LLC, No. 17-5452, 2019 WL 2932637, at *6 (C.D. Cal. Jan. [4], 2019) (reasoning similarly in similar circumstances); Nguyen v. BMW of N. Am., LLC, No. 20-2432, 2023 WL 173921, at *7 (S.D. Cal. Jan. 12, 2023) (applying a 10 percent “haircut” based on similar reasoning). Accordingly, the court awards plaintiff’s net attorneys’ fees in the amount of $79,994.00 ($99,992.50 x .80). E. Costs Plaintiff argues she is also entitled to recover costs and expenses reasonably incurred in prosecuting this case. Mot. at 22–23. Plaintiff requests $9,721.63 litigation costs. Federal Rule of Civil Procedure 54(d)(1) provides “costs--other than attorney’s fees-- should be allowed to the prevailing party.” Fed. R. Civ. P. 54(d)(1). Under 28 U.S.C. § 1920, certain costs may be taxed by the court. “[A]bsent explicit statutory or contractual authorization for the taxation of the expenses of a litigant’s witness as costs, federal courts are bound by the limitations set out in 28 U.S.C. § 1821 and § 1920.” Crawford Fitting Co. v. J. T. Gibbons, Inc., 482 U.S. 437, 445 (1987). Defendant objects to plaintiff’s request for costs on the following grounds. First, it objects to the $2,228.98 billed to First Legal for e-filing documents because they are not recoverable under 28 U.S.C. § 1920 and because plaintiff “could have filed [her] documents through PACER without incurring additional costs.” Opp’n at 20. Second, it objects to the $987.95 plaintiff billed for non-appearance of a witness during a deposition. Id. at 21. Third, it objects to $1,586 plaintiff billed to an expert for a vehicle inspection. Id. Fourth, it objects to the $256.43 plaintiff paid for trial binder preparation. Plaintiff argues defendant’s objections are untimely because it did not object to plaintiff’s bill of costs. Reply at 10–11 (relying on E.D. Cal. L.R. 292(c)). Under Local Rule 292(c), a party opposing costs may file objections within seven days. Plaintiff also argues costs are recoverable under state law. Mot. at 23; Second Tabesh Decl. ¶¶ 16–17. As noted, plaintiff filed a bill of costs in the amount of $9,246.63. See Bill of Costs. This amount is different from the $9,721.63 plaintiff requests in this motion, which requests an additional $475 in costs.8 See Mot. at 23. However, apart from the costs associated with attending a hearing in 2023 ($475), the costs plaintiff seeks to recover in this motion appear to be identical to the costs she listed in the Bill of Costs. Compare Carvalho Decl., ECF No. 92-1 (itemizing costs) with SLP Invoice. Defendant did not file objections to the bill of costs. Under the Local Rules and 28 U.S.C. § 1920, only certain costs may be taxed. Notwithstanding any state law, neither the e-filing costs nor the expert costs may be taxed. Although plaintiff relies on state law authorities, in this diversity case, the court must apply federal procedural law to determine what plaintiff may recover as costs. See Aceves v. Allstate Ins. Co., 68 F.3d 1160, 1167–68 (9th Cir. 1995). Under the applicable federal law, plaintiffs are entitled to compensation only for certain types of fees and “court appointed experts.” See 28 U.S.C. § 1920; Seebach, 2021 WL 516712, at *1. Accordingly, neither the e-filing fees nor the expert fees can be taxed.
[*19][*20]8 $9,721.63 – $9,246.63 = $475. Notwithstanding the above, plaintiff may move for “nontaxable expenses” under Rule 54. “A claim for attorney’s fees and related nontaxable expenses must be made by motion unless the substantive law requires those fees to be proved at trial as an element of damages.” Fed. R. Civ. P. 54(d)(2). Because plaintiff has labelled this motion as a motion for attorney’s fees, costs, and expenses, included a request for costs and litigation expenses as part of this motion, and the amount of costs requested is different from the amount listed in the bill of costs, the court strikes the bill of costs and construes this motion as a request for nontaxable expenses and costs under Rule 54(d)(2). See Mot. at 22 n.19 (noting presentation of arguments to show plaintiff’s costs not limited to those enumerated in Local Rules). Because defendant has timely opposed this motion, defendant’s objections to the costs are timely. Here, plaintiff may recover reasonably incurred costs and expenses as nontaxable expenses under the Song-Beverly Act. See Cal. Civ. Code § 1794; see, e.g., Powell, 2020 WL 4937358, at[*11] (expert fees recoverable on noticed motion as nontaxable expense); cf., e.g., Grove v. Wells Fargo Fin. Cal., Inc., 606 F.3d 577, 580–81 (9th Cir. 2010) (“[W]e repeatedly have allowed prevailing plaintiffs to recover non-taxable costs where statutes authorize attorney’s fees awards to prevailing parties.”); Csorba v. Litton Elec. Tubes Div., 36 F. App’x 609 (9th Cir. 2002) (unpublished) (“The district court did not abuse its discretion in awarding Litton $1,540.10 in nontaxable expenses because that amount is reasonable in light of the nature and length of the litigation.”). Here, plaintiff has not shown the $2,228.98 billed to First Legal for e-filing documents was reasonably incurred. She does not argue she had to file documents through First Legal and does not address defendant’s argument she could have filed those documents through PACER without incurring these additional costs. Plaintiff does not explain how these expenses were reasonable. Plaintiff also does not show the $1,586 in expert fees was reasonable. Plaintiff does not explain what the expert did, why she needed to hire an expert, whether the expert produced a report, or why the fee itself is reasonable in the circumstances of this case. Cf. Powell, 2020 WL 4937358, at[*11] –12 (plaintiff explained expert’s testimony would have been relevant to his Song- Beverly Act claim and amounts charged were reasonable). Finally, the $256.43 for trial binder preparation is unreasonable. There was no final pretrial conference or any order setting a trial date—it is unclear why plaintiff needed to create a trial binder. Accordingly, the court declines to award these costs. However, the court declines to deduct the $987.95 plaintiff billed for non-appearance of a witness during a deposition. As noted above, defendant does not show it served timely objections to the deposition. The court awards costs of $5,650.22.9 IV. CONCLUSION The court has adjusted the rates requested by plaintiff’s counsel to align with the rates in this district, deducted hours defendants have shown were excessive and unreasonable, applied a negative multiplier and has declined to award certain costs. Plaintiff’s motion for attorney’s fees, costs and expenses is granted in the modified amount of $79,994.00 for attorney’s fees ($42,800.00 for Eco Tech and $37,194.00 for SLP) and $5,650.22 for costs. This order resolves ECF No. 93. IT IS SO ORDERED. DATED: August 27, 2024.
9 $9,721.63 – $2,228.98 – $1,586.00 – $256.43 = $5,650.22.